Shortly after U.S. President Donald Trump announced a new massive AI infrastructure investment from the White House, \u201cFirst Buddy\u201d Elon Musk tried to tear it down.<\/p>\n\n\n\n
\u201cThey don\u2019t actually have the money,\u201d Musk wrote on his social media platform X. \u201cSoftBank has well under $10B secured. I have that on good authority.\u201d<\/p>\n\n\n\n
\nThey don\u2019t actually have the money\u2014 Elon Musk (@elonmusk) January 22, 2025<\/a><\/p>\n<\/blockquote>\n\n\n\n
\nSoftBank has well under $10B secured. I have that on good authority.\u2014 Elon Musk (@elonmusk) January 22, 2025<\/a><\/p>\n<\/blockquote>\n\n\n\n
Trump said the investment will create a new company, called Stargate, to grow artificial intelligence infrastructure in the United States. The leaders of SoftBank, OpenAI and Oracle stood alongside Trump during the announcement. Their respective companies will invest $100 billion in total for the project to start, with plans to pour up to $500 billion into Stargate in the coming years.<\/p>\n\n\n\n
The comments are a notable takedown of a major White House project from someone that is in Trump\u2019s innermost circle. As a sign of how involved Musk is in the first days of the administration, Musk said he was in the Oval Office<\/a> on Tuesday as Trump signed a pardon<\/a> for Ross William Ulbricht, founder of the dark web marketplace SilkRoad. Musk had also dispatched a top staffer from his SpaceX and X companies to help ensure the release of convicted January 6 rioters after Trump signed a blanket pardon.<\/p>\n\n\n\n
But perhaps it should not be a surprise that Musk is going after an OpenAI initiative. Musk is in an ongoing lawsuit with OpenAI and its CEO Sam Altman, who was at the White House for the announcement. Musk, who has said he \u201cdoesn\u2019t trust\u201d Altman, claims in the lawsuit the ChatGPT has abandoned its original nonprofit mission by reserving some of its most advanced AI technology for private customers.<\/p>\n\n\n\n
The companies involved in Stargate have not publicly disclosed how they will contribute the funds, but they don\u2019t necessarily need the money in the bank to support it \u2014 they could raise debt or sign on other equity investors.<\/p>\n\n\n\n
Altman replied directly to Musk\u2019s claim on X, writing \u201cwrong, as you surely know. want to come visit the first site already under way? this is great for the country. i realize what is great for the country isn\u2019t always what\u2019s optimal for your companies, but in your new role i hope you\u2019ll mostly put (America) first.\u201d<\/p>\n\n\n\n
A source familiar with Stargate said Musk\u2019s assertion is not true.<\/p>\n\n\n\n
Softbank, the source pointed out, has $24.3 billion of cash on its balance sheet per its latest earnings and that it is comfortable taking on more debt to help fund the project, the wherewithal to access more capital.<\/p>\n\n\n\n
The source pointed out that MGX has $100 billion in capital commitments, Oracle has $11 billion in cash on its balance sheet and OpenAI recently announced it has more than $10 billion from its recent round of venture capital.<\/p>\n\n\n\n
Satya Nadella, CEO of Microsoft, which is working with OpenAI on Stargate, said on CNBC Wednesday \u201call I know is I\u2019m good for my $80 billion.\u201d<\/p>","protected":false},"excerpt":{"rendered":"
Shortly after U.S. President Donald Trump announced a new massive AI infrastructure investment from the White House, \u201cFirst Buddy\u201d Elon Musk tried to tear it down. \u201cThey don\u2019t actually have the money,\u201d Musk wrote on his social media platform X. \u201cSoftBank has well under $10B secured. I have that on good authority.\u201d They don\u2019t actually […]<\/p>\n","protected":false},"author":9,"featured_media":32910,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard"},"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"jnews_post_split":[],"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[47],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\n
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